Diageo winds up with 25 pct stake in United Spirits

LONDON, July 4 Global drinks firm Diageo
said on Thursday it had acquired a 25 percent stake in India's
United Spirits, considerably less than the
London-listed firm had originally hoped for.

In November, Diageo said it was buying 27.4 percent of
United Spirits directly from the Indian group, which is
controlled by tycoon Vijay Mallya.

It also launched a mandatory offer for another 26 percent on
the open market.

But some lenders refused to release security over 3.5
million shares held by the United Spirits benefit trust,
equivalent to a shareholding of around 2.4 percent, Diageo said.

And its open offer largely failed, with the company
acquiring only a small fraction of shares in this way, after
Diageo decided not to lift its offer price despite a surge in
the value of United Sprits shares earlier this year.

Diageo said it would now begin to implement its own
operational and governance standards at United Spirits, but that
this could involve greater management time, costs and resources
than originally expected.

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